KBRA Releases Monthly CMBS Trend Watch

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases April’s CMBS Trend Watch.

Private-label CMBS pricing volume fell to $4.1 billion in April, the lowest monthly amount since this time last year. Despite the dip, year-to-date volume is up 45% year-over-year (YoY). In addition, issuance is expected to remain strong for the duration of the second quarter, much of it led by single borrower deals – we may see more than two dozen launch over the remainder of the quarter. At this time, we are also aware of as many as eight conduits that will announce through the end of June.

In addition to CMBS, we are aware of as many as a half dozen CRE CLOs that may go out by the end of June…with a few more that could trail closely behind.

On the ratings front, KBRA published pre-sales for eight deals ($5.7 billion), including two conduits ($1.7 billion), two single family rentals ($1.4 billion), one Freddie K-Series ($1.2 billion), one CRE CLO ($826.6 million), one single borrower ($382.0 million) and one small balance commercial ($186.1 million). Surveillance activity included a review of 232 rated classes, including 224 that were affirmed, five that were upgraded and three that were downgraded.

In this month’s spotlight section, we highlight the various research reports that were published in April, which covered a wide range of topics. Among them were a review of the Manhattan commercial real estate market, CRE CLOs, and change in the compositions of CMBS conduit pools over the course of the rating process – with a focus on loan drops.

In our credit metrics section, we highlight the continual rise in our KBRA IO Index, which surpassed its record set last month of 61.7% to 62.8%.

To view the report, please click here.

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Kroll Bond Rating Agency
Analytical:
Taeho Lee, 646-731-2317
Associate
tlee@kbra.com
or
Larry Kay, 646-731-2452
Senior Director
lkay@kbra.com
or
Eric Thompson, 646-731-2355
Senior Managing Director
ethompson@kbra.com

Contacts

Kroll Bond Rating Agency
Analytical:
Taeho Lee, 646-731-2317
Associate
tlee@kbra.com
or
Larry Kay, 646-731-2452
Senior Director
lkay@kbra.com
or
Eric Thompson, 646-731-2355
Senior Managing Director
ethompson@kbra.com